In today’s volatile market, savvy investors are hunting for defensive plays that deliver reliable income and steady growth. For those looking to deploy their next chunk of capital, I think Fortis (TSX: FTS) is a top place to consider investing.
Here’s why this regulated utility giant offers the stability amid economic uncertainty many investors should be looking for right now.
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Stellar dividend record
Fortis boasts 52 consecutive years of dividend increases, an impressive fact in and of itself. Indeed, with another recent 4.1% hike to $0.64 quarterly, this stock now yields roughly 3.3% at current prices.
Even more impressively, the company’s payout ratio of 73% is sustainable, covered comfortably by earnings. That makes Fortis among the top defensive dividend giants in the market, and a cornerstone for income seekers.
Robust moat and financials
As one of North America’s largest investor-owned utilities, Fortis serves 3.7 million customers with regulated assets. This business model shields the company from market swings. A manageable debt-to-equity of 1.4 underscores financial health, while solid analyst ratings support continued price appreciation over time. In other words, the sort of total returns many investors have come to expect could continue a lot longer than many may think.
This past quarter, Fortis posted 2025 adjusted earnings per share of $3.53. That figure increased meaningfully from the $3.28 in EPS the company reported in 2024. And on a go-forward basis, analysts now forecast 8.8% growth to $3.68 in 2026 on $12.8 billion in revenue.
As the utility giant’s rate base continues to expand (it expanded 7% last year via $5.6 billion capex), I think plenty more earnings and cash flow growth is ahead. This should support both capital appreciation upside and continued dividend growth for investors seeking portfolio balance right now. Balance is certainly a nice idea, given all the uncertainty in the markets right now.
Bottom line
Fortis eyes grid expansion, renewables, and LNG in B.C., plus U.S. transmission for load growth and clean energy ties. With upgraded EPS expectations moving forward and analyst optimism, there’s not a lot investors can point to as a reason to sell this name right now. I think Fortis is one of those rare opportunities that’s worth buying on the way up today.
